The markets have already gotten past several of the big, ugly headwinds that were on the horizon back in August, namely, the Fed’s tapering decision and the German elections. Now the market is stuck on the latest: the budget fights down in Washington, D.C.

Equities have been easing off for several sessions now, while bonds have gotten something of a reprieve. The yield on the U.S. 10-year Treasury note, for instance, has slipped down to 2.64%, after just touching a few weeks ago the 3% level. Meanwhile, the Dow Jones Industrial Average is riding a four-session losing streak (currently up about 25 points, that may get broken).

Still, the losses among equities have been relatively mild, and while the market’s got one eye on the spectacle down in Washington, it doesn’t seem particularly concerned.

“There is a view in Washington that financial market participants are a bit too optimistic about the prospects for the U.S. debt ceiling being raised,” Kit Juckes, forex strategist at Societe Generale, wrote in a note. “Guilty as charged. Observing a man holding a loaded shotgun, pointed at his own foot, I imagine common sense will prevail in time for tragedy to be avoided.”

The market’s losses can also be explained by the technicals. In a morning note, UBS’s Art Cashin pointed to the 1690-1695 level on the S&P 500 as a key range. The index went as low as 1691.95, but didn’t break through it, and it seems there’s been a bit of midday rebound since.

Will that hold? The market’s been watching the macro stories, but so far none of them have been very troubling. In fact, September’s turning into a “kick-the-can” month for policy makers that is turning into a present for investors, said Jeffrey Kleintop, chief market strategist at LPL Financial.

“After kicking the can on Syria, a new Fed chairman, and now tapering, the market is beginning to wonder if the government funding deadline and debt ceiling are the next cans to be kicked by those in Washington,” he wrote.

‘While the headlines are warning of another government shutdown (indeed, some networks already have their countdown clocks out), for investors it might just be “setting up another buy-the-dip opportunity ahead of an 11th-hour compromise,” Mr. Kleintop says.